HI SCR15

Requests the Office of the Auditor to conduct a performance audit of the Department of Hawaiian Home Lands' "paper lease" or "undivided lease" system, where beneficiaries hold lease rights to larger parcels before individual lots are subdivided and assigned.

The Department of Hawaiian Home Lands administers approximately 200,000 acres of trust land under the Hawaiian Homes Commission Act of 1920 for native Hawaiian beneficiaries.

The audit scope includes evaluating the effectiveness of transitioning beneficiaries to lot-specific leases, average duration beneficiaries remain in undivided lease status, administrative efficiency, internal controls, record integrity, and compliance with fiduciary obligations.

Concerns prompting the audit include extended periods beneficiaries wait without assignment to specific lots, inconsistent recordkeeping, lack of transparency regarding beneficiary rights, and delays in homestead development.

The Auditor must submit findings and recommendations to the Legislature no later than 20 days prior to the Regular Session of 2027.